Annual Property Taxes in Spain: IBI and Non-Resident Tax
Buying is a one-off cost. These two taxes come back every single year you own the property — whether or not you ever rent it out.
Owning property in Spain comes with two recurring annual taxes that often catch new owners by surprise, simply because nobody mentions them until the first bill arrives.
IBI — the local property tax
IBI (Impuesto sobre Bienes Inmuebles) is an annual local tax set by each town hall, calculated on the property's cadastral value rather than its purchase price. The rate varies by municipality, so it's worth asking the seller for last year's receipt before committing to a purchase rather than guessing.
Non-resident income tax (IRNR) — tax even if you never rent it out
If you're not a Spanish tax resident and own a property purely for your own use, Spain treats that ownership as generating notional ("imputed") income — even if the property is never rented out. Imputed income is generally calculated as 2% of the cadastral value (1.1% where values have been recently revised), taxed at 19% for EU/EEA residents and 24% for everyone else, declared on Modelo 210.
A worked example
On a property with a €60,000 cadastral value, imputed income works out to €1,200 a year, which comes to roughly €228 a year at the 19% EU/EEA rate. These are illustrative figures based on the cadastral value, not the purchase price — your own figures will depend on your property's specific cadastral valuation.
Filing, deadlines and the year you buy
Missing the IRNR filing can mean penalties plus interest, which is why many non-resident owners use a gestor to handle it. In the year of purchase, IBI itself can be split proportionally with the seller if both parties agree — ideally this is written into the deed rather than left as a verbal understanding.
Frequently asked questions
Do I owe non-resident tax even if I never rent the property out?
Yes. Spain treats non-resident ownership of a property for personal use as generating notional ("imputed") income, taxed annually regardless of whether the property is ever actually rented out.
Is IBI based on the price I paid for the property?
No — IBI is calculated on the property's cadastral value, which is set by the town hall and can differ significantly from the purchase price. It's worth asking the seller for the most recent receipt to see the actual figure before buying.
This article is general information, not tax or legal advice. Rules and rates can change — always confirm current figures with a qualified gestória or lawyer before relying on them.